Wall Street advanced on Monday (Tuesday AEST), driven by a rebound in technology shares and a surge in Electronic Arts following a multibillion-dollar takeover announcement.
The Dow Jones Industrial Average added 68.8 points or 0.2% to 46,316.1, the S&P 500 gained 17.5 points or 0.3% to finish at 6,661.2, while the Nasdaq Composite climbed 107.1 points or 0.5% to 22,591.2.
AI bellwether Nvidia rose 2.1% after a week of selling pressure that had raised doubts over the sustainability of the artificial intelligence trade.
Other chipmakers joined the rebound, with Advanced Micro Devices advancing 1.2% and Micron Technology up 4.2%.
Shares of video game publisher Electronic Arts soared 4.5% after announcing a US$55 billion deal to take the company private.
Meanwhile, market participants remain focused on Washington, where a budget impasse between Republicans and Democrats threatens to shut down the federal government from Wednesday, the start of the new fiscal year.
The Labor Department has said it will withhold economic data releases, including Friday’s closely watched September nonfarm payrolls report, if the shutdown goes ahead.
President Donald Trump warned that the disruption could lead to large-scale staff cuts across federal agencies. “We are going to cut a lot of the people that ... we're able to cut on a permanent basis, and we will be doing that. I’d rather not do that,” he told NBC News.
Markets have historically weathered shutdowns with limited impact, but traders noted that a delay in key economic data could complicate expectations for the Federal Reserve’s interest rate path.
Despite recent volatility, equities remain on track for monthly gains. The Dow has gained 1.7% so far in September, the S&P 500 has risen 3.1%, and the Nasdaq has lifted 5.3%.
On the bond markets, Treasury yields retreated, with the 10-year yield down 0.8% to 4.141% and the 2-year yield falling 0.5% to 3.625%.
